Loaded

3 Poverty, Privilege, and Prejudice A Crash Course in the Science of Money Psychology

THIS CHAPTER LOOKS at research findings on how money affects the mind, and how our mental shortcuts can affect the way we deal with our money, and each other. Are the cultural stereotypes and money messages that surround us true? Does money corrupt? Is less really more? How does thinking about money affect a person’s desire to help others? How does the way a person thinks about time relate to their financial behaviors? These and many other questions are addressed in this section.

In the next few pages, I will walk you through research that looks at how having money, or not having it, can affect your health, your relationships, and your perspective. Some of this might seem heady and complex, and you may wonder what these studies have to do with your day-to-day life and money management. The fact is that both lack and privilege can affect many parts of our psychology, and if we want to change our behaviors, we need to understand where they come from. We’ve talked about how our experiences with lack or wealth can shape our personal narratives. Now, we’ll look at how having (or not having) money affects other parts of our minds, shaping our behavior in ways we may never have thought about before.

Since the concept of money affecting our psychology is a very sensitive topic, I have done my best to document the studies that support the claims made in this section. I want you to be able to trust ...